Texas 2023 - 88th Regular

Texas Senate Bill SB1238 Compare Versions

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1	1	S.B. No. 1238
2	2
3	3
4	4	AN ACT
5	5	relating to broadband development.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Sections 490I.0101(a) and (b), Government Code,
8	8	are amended to read as follows:
9	9	(a) For purposes of this chapter, subject to Subsection (b),
10	10	"broadband service" means Internet service with the capability of
11	11	providing a:
12	12	(1) [a download] speed of not less than 25 megabits per
13	13	second for a download [or faster]; [and]
14	14	(2) [an upload] speed of not less than three megabits
15	15	per second for an upload; and
16	16	(3) network round-trip latency of less than or equal
17	17	to 100 milliseconds based on the 95th percentile of speed
18	18	measurements [or faster].
19	19	(b) If the Federal Communications Commission adopts
20	20	standards [upload or download threshold speeds] for advanced
21	21	telecommunications capability under 47 U.S.C. Section 1302 that are
22	22	different than those specified by Subsection (a), the comptroller
23	23	by rule may require Internet service to be capable of matching the
24	24	[providing download or upload speeds that match that] federal
25	25	standards [threshold] in order to qualify under this chapter as
26	26	"broadband service."
27	27	SECTION 2. Sections 490I.0105(a), (b), (c), (d), (f), (k),
28	28	(l), (n), (o), and (p), Government Code, are amended to read as
29	29	follows:
30	30	(a) The broadband development office shall create, update
31	31	annually, and publish on the comptroller's Internet website a map
32	32	classifying each broadband serviceable location [designated area]
33	33	in this state as:
34	34	(1) an unserved location [eligible area,] if[:
35	35	[(A) fewer than 80 percent of the addresses in]
36	36	the location does not [designated area] have access to reliable
37	37	broadband service capable of providing the speeds described by
38	38	Section 490I.0101(a); [and
39	39	[(B) the federal government has not awarded
40	40	funding under a competitive process to support the deployment of
41	41	broadband service to addresses in the designated area; or]
42	42	(2) an underserved location [ineligible area,] if the
43	43	location is not an unserved location but does not[:
44	44	[(A) 80 percent or more of the addresses in the
45	45	designated area] have access to reliable broadband service with the
46	46	capability of providing:
47	47	(A) a speed of not less than 100 megabits per
48	48	second for a download;
49	49	(B) a speed of not less than 20 megabits per
50	50	second for an upload; and
51	51	(C) a network round-trip latency of less than or
52	52	equal to 100 milliseconds based on the 95th percentile of speed
53	53	measurements; or
54	54	(3) a served location if the location is neither an
55	55	unserved nor an underserved location [(B) the federal government
56	56	has awarded funding under a competitive process to support the
57	57	deployment of broadband service to addresses in the designated
58	58	area].
59	59	(b) The comptroller by rule may establish new threshold
60	60	speeds for a location to qualify as an underserved location if the
61	61	comptroller has required Internet service to be capable of matching
62	62	federal standards to qualify as broadband service under Section
63	63	490I.0101(b) [determine the scope of a designated area under
64	64	Subsection (a)].
65	65	(c) After creation of the initial map described in
66	66	Subsection (a), the office may evaluate the usefulness of the
67	67	standards for unserved and underserved locations [eligible and
68	68	ineligible areas] outlined in Subsection (a) and, if appropriate,
69	69	make a recommendation to the legislature to revise the standards.
70	70	(d) The map required by Subsection (a) must organize
71	71	broadband serviceable locations into designated areas and display
72	72	for each area:
73	73	(1) the number of broadband service providers that
74	74	serve the [each designated] area;
75	75	(2) [for each eligible area,] an indication of whether
76	76	the area has access to Internet service that is not broadband
77	77	service, regardless of the technology used to provide the service;
78	78	[and]
79	79	(3) each public school campus [in this state] with an
80	80	indication of whether the public school campus has access to
81	81	broadband service; and
82	82	(4) the number and percentage of unserved,
83	83	underserved, and served locations within the area.
84	84	(f) Except as provided by Subsection (g), the office shall
85	85	use the best available data, including information available from
86	86	the Federal Communications Commission, to create or update the map.
87	87	(k) A person who contracts under Subsection (i) may not
88	88	provide services in this state to [for] a broadband provider [in
89	89	this state] before the second anniversary of the last day the
90	90	contract is in effect.
91	91	(l) The office shall establish criteria for determining
92	92	whether a broadband serviceable location [designated area] should
93	93	be reclassified as an unserved or underserved location [eligible
94	94	area or an ineligible area]. The criteria must include an
95	95	evaluation of Internet speed test and reliability data [and
96	96	information on end user addresses. The criteria may also include
97	97	community surveys regarding the reliability of Internet service,
98	98	where available].
99	99	(n) A broadband service provider or political subdivision
100	100	may petition the office to reclassify a broadband serviceable
101	101	location [designated area on the map as an eligible area or
102	102	ineligible area]. The office shall provide notice of each accepted
103	103	[the] petition to each affected broadband service provider and
104	104	political subdivision by posting [that provides broadband service
105	105	to the designated area and post] notice of the petition on the
106	106	comptroller's Internet website.
107	107	(o) Not later than the 45th day after the date that the
108	108	office posts [a broadband provider receives] notice under
109	109	Subsection (n), each affected broadband service [the] provider or
110	110	political subdivision may [shall] provide information to the office
111	111	showing whether the broadband serviceable location [designated
112	112	area] should or should not be reclassified.
113	113	(p) Not later than the 75th day after the date that the
114	114	office posts the [a broadband provider receives] notice under
115	115	Subsection (n), the office shall determine whether to reclassify
116	116	the broadband serviceable location [designated area] on the map and
117	117	update the map as necessary. A determination made by the office
118	118	under this subsection is not a contested case for purposes of
119	119	Chapter 2001.
120	120	SECTION 3. Section 490I.0106, Government Code, is amended
121	121	to read as follows:
122	122	Sec. 490I.0106. BROADBAND DEVELOPMENT PROGRAM. (a) The
123	123	broadband development office shall establish a program to award
124	124	grants, low-interest loans, and other financial incentives to
125	125	applicants for the purpose of expanding access to and adoption of
126	126	broadband service [in designated areas determined to be eligible
127	127	areas by the office under Section 490I.0105].
128	128	(a-1) The office may award grants, low-interest loans, and
129	129	other financial incentives to applicants for eligible broadband
130	130	infrastructure projects designed to provide qualifying broadband
131	131	service to unserved and underserved locations. For the purposes of
132	132	this subsection, an eligible broadband infrastructure project
133	133	includes a project in which not less than 80 percent of the
134	134	broadband serviceable locations to be served by the project are
135	135	unserved and underserved locations.
136	136	(a-2) The office may award grants, low-interest loans, and
137	137	other financial incentives to applicants for middle-mile broadband
138	138	infrastructure projects.
139	139	(a-3) The office may award grants, low-interest loans, and
140	140	other financial incentives to applicants for projects not involving
141	141	the deployment of broadband infrastructure that expand the
142	142	accessibility, affordability, or adoption of broadband service,
143	143	including education, training, community outreach, remote learning
144	144	or telehealth facilities, equipment purchases, or any other use
145	145	permitted by the applicable funding source.
146	146	(b) The office shall establish eligibility and award [and
147	147	publish] criteria for making awards under this chapter for each
148	148	applicable notice of funds availability. The comptroller by rule
149	149	may prescribe the manner in which the office shall provide notice to
150	150	applicants of the applicable criteria [Subsection (a)]. In
151	151	establishing eligibility and award criteria, the [The] office
152	152	shall:
153	153	(1) take into consideration grants and other financial
154	154	incentives awarded by the federal government for the deployment of
155	155	broadband service [in a designated area];
156	156	(2) prioritize the applications of applicants that
157	157	will expand access to and adoption of broadband service in
158	158	designated [eligible] areas in which the highest [lowest]
159	159	percentage of broadband serviceable locations are unserved or
160	160	underserved locations; [addresses have access to broadband
161	161	service; and]
162	162	(3) prioritize the applications of applicants that
163	163	will expand access to broadband service in public and private
164	164	primary and secondary schools and institutions of higher education;
165	165	(4) give preference to an applicant that provided the
166	166	information requested by the office under Section 490I.0105 or
167	167	490I.01061; and
168	168	(5) take into consideration whether an applicant has
169	169	forfeited federal funding for defaulting on a project to deploy
170	170	qualifying broadband service.
171	171	(c) Notwithstanding Subsection (b)(2), the office may
172	172	establish criteria that take into account a cost benefit analysis
173	173	for awarding money to the [eligible] areas described by that
174	174	subdivision.
175	175	(d) The office may not:
176	176	(1) except as provided by Section 490I.01062, favor a
177	177	particular broadband technology in awarding grants, loans, or other
178	178	financial incentives;
179	179	(2) [award grants, loans, or other financial
180	180	incentives to a broadband provider that does not report information
181	181	requested by the office under Section 490I.0105;
182	182	[(3)] award a grant, loan, or other financial
183	183	incentive to a noncommercial provider of broadband service for a
184	184	broadband serviceable location [an eligible area] if an eligible
185	185	[a] commercial provider of broadband service has submitted an
186	186	application for the same location; [eligible area; or]
187	187	(3) [(4)] take into consideration distributions from
188	188	the state universal service fund established under Section 56.021,
189	189	Utilities Code, when deciding to award grants, loans, or other
190	190	financial incentives; or
191	191	(4) except as provided by Section 490I.01061, award a
192	192	grant, loan, or other financial incentive for deployment of
193	193	last-mile broadband service for a location that is subject to a
194	194	federal commitment to deploy qualifying broadband service on the
195	195	date the application is submitted or during the application
196	196	process.
197	197	(e) The office shall:
198	198	(1) post on the comptroller's Internet website
199	199	information about the application process and the receipt of awards
200	200	and shall update that information as necessary; and
201	201	(2) post on the comptroller's Internet website for at
202	202	least 30 days information from each accepted application, including
203	203	the applicant's name, the area targeted for expanded broadband
204	204	service access or adoption by the application, and any other
205	205	information the office considers relevant or necessary[, for a
206	206	period of at least 30 days before the office makes a decision on the
207	207	application].
208	208	(f) During the 30-day posting period described by
209	209	Subsection (e) for an application, the office shall accept from any
210	210	interested party, other than a broadband service provider that does
211	211	not report information requested by the office under Section
212	212	490I.0105 or 490I.01061, a written protest of the application
213	213	relating to whether the applicant or project is eligible for an
214	214	award or should not receive an award based on the criteria
215	215	prescribed by the office.
216	216	(g) Notwithstanding any deadline for submitting an
217	217	application, if the office upholds a protest submitted under
218	218	Subsection (f) on the grounds that one or more of the broadband
219	219	serviceable locations are not eligible to receive funding under
220	220	this chapter [addresses in an eligible area subject to the
221	221	application have access to broadband service], the applicant may
222	222	resubmit the application without the challenged locations
223	223	[addresses] not later than 30 days after the date that the office
224	224	upheld the protest.
225	225	(h) The office shall establish and publish criteria for
226	226	award recipients. The criteria must include requirements that
227	227	grants, loans, and other financial incentives awarded through the
228	228	program for the deployment of broadband infrastructure may be used
229	229	only for capital expenses, purchase or lease of property, and other
230	230	expenses, including backhaul and transport, that will facilitate
231	231	the provision or adoption of broadband service.
232	232	(i) An award granted under this section does not affect the
233	233	eligibility of a telecommunications provider to receive support
234	234	from the state universal service fund under Section 56.021,
235	235	Utilities Code.
236	236	SECTION 4. Chapter 490I, Government Code, is amended by
237	237	adding Sections 490I.01061 and 490I.01062 to read as follows:
238	238	Sec. 490I.01061. EXISTING FEDERAL FUNDING; REPORTING
239	239	REQUIREMENTS. (a) The broadband development office may award a
240	240	grant, loan, or other financial incentive for deployment of
241	241	last-mile broadband service for a location that is subject to a
242	242	federal commitment to deploy qualifying broadband service if:
243	243	(1) federal funding is forfeited or the recipient of
244	244	the federal funding is disqualified from receiving the funding; and
245	245	(2) the location otherwise may receive funding under
246	246	the program.
247	247	(b) An applicant for an award under this chapter that has
248	248	been awarded federal funding directly and has entered into an
249	249	enforceable commitment to deploy broadband services in a location
250	250	shall provide to the office information the office may require
251	251	regarding:
252	252	(1) the existing enforceable commitment; and
253	253	(2) the proposed deployment of broadband.
254	254	Sec. 490I.01062. FIBER OPTIC PREFERENCE. (a) The
255	255	broadband development office shall prioritize broadband
256	256	infrastructure projects that connect each end-user location using
257	257	end-to-end fiber optic facilities that meet speed, latency,
258	258	reliability, consistency, scalability, and related criteria as the
259	259	office shall determine for each applicable notice of funds
260	260	availability.
261	261	(b) The office may consider an application for a broadband
262	262	infrastructure project that does not employ end-to-end fiber optic
263	263	facilities if the use of an alternative technology:
264	264	(1) is proposed for a high cost area;
265	265	(2) may be deployed at a lower cost; or
266	266	(3) meets the criteria established by the office under
267	267	Subsection (a).
268	268	SECTION 5. Section 490I.0107(b), Government Code, is
269	269	amended to read as follows:
270	270	(b) In developing the state broadband plan, the office
271	271	shall:
272	272	(1) to the extent possible, collaborate with state
273	273	agencies, political subdivisions, broadband industry stakeholders
274	274	and representatives, and community organizations that focus on
275	275	broadband services and technology access;
276	276	(2) [consider the policy recommendations of the
277	277	governor's broadband development council;
278	278	[(3)] favor policies that are technology-neutral and
279	279	protect all members of the public;
280	280	(3) [(4)] explore state and regional approaches to
281	281	broadband development; and
282	282	(4) [(5)] examine broadband service needs related
283	283	to:
284	284	(A) public safety, including the needs of state
285	285	agencies involved in the administration of criminal justice, as
286	286	that term is defined by Article 66.001, Code of Criminal Procedure;
287	287	(B) public education and state and local
288	288	education agencies, including any agency involved in the electronic
289	289	administration of an assessment instrument required under Section
290	290	39.023, Education Code; and
291	291	(C) public health, including the needs of state
292	292	agencies involved in the administration of public health
293	293	initiatives such as the Health and Human Services Commission and
294	294	the Department of State Health Services.
295	295	SECTION 6. Sections 490I.0110(b), (h), and (i), Government
296	296	Code, are amended to read as follows:
297	297	(b) The broadband development office board of advisors is
298	298	composed of 10 members, appointed as follows:
299	299	(1) two members appointed by the governor, including:
300	300	(A) one member to represent the Texas Economic
301	301	Development and Tourism Office; and
302	302	(B) one member of the public with experience in
303	303	telecommunications or [to represent nonprofit corporations that
304	304	work on the expansion, adoption, affordability, and use of]
305	305	broadband service;
306	306	(2) three members appointed by the lieutenant
307	307	governor, including:
308	308	(A) one member who resides in an urban area;
309	309	(B) one member to represent the public primary
310	310	and secondary education community; and
311	311	(C) one member who resides in a county that:
312	312	(i) is adjacent to an international border;
313	313	(ii) is located not more than 150 miles from
314	314	the Gulf of Mexico; and
315	315	(iii) has a population of more than 60,000;
316	316	(3) three members appointed by the speaker of the
317	317	house of representatives, including:
318	318	(A) one member who resides in a rural area;
319	319	(B) one member to represent the health and
320	320	telemedicine industry; and
321	321	(C) one member to represent the public higher
322	322	education community;
323	323	(4) the comptroller or the comptroller's designee; and
324	324	(5) one nonvoting member appointed by the broadband
325	325	development office to represent the office.
326	326	(h) The [Beginning one year after the effective date of the
327	327	Act enacting this chapter, the] board of advisors shall meet at
328	328	least semiannually [once every other month] with representatives
329	329	from the broadband development office for the purpose of advising
330	330	the work of the office in implementing the provisions of this
331	331	chapter.
332	332	(i) A person who is professionally affiliated with a person
333	333	serving as a member of the board of advisors is not eligible for
334	334	funding from the broadband development program under Section
335	335	490I.0106 if the member is involved in decisions regarding the
336	336	award of grants, loans, or other financial incentives under that
337	337	section.
338	338	SECTION 7. The following provisions of the Government Code
339	339	are repealed:
340	340	(1) Section 490I.0101(c); and
341	341	(2) Section 490I.0105(m).
342	342	SECTION 8. This Act takes effect immediately if it receives
343	343	a vote of two-thirds of all the members elected to each house, as
344	344	provided by Section 39, Article III, Texas Constitution. If this
345	345	Act does not receive the vote necessary for immediate effect, this
346	346	Act takes effect September 1, 2023.
347	347	______________________________ ______________________________
348	348	President of the Senate Speaker of the House
349	349	I hereby certify that S.B. No. 1238 passed the Senate on
350	350	April 5, 2023, by the following vote: Yeas 31, Nays 0;
351	351	May 4, 2023, Senate refused to concur in House amendments and
352	352	requested appointment of Conference Committee; May 5, 2023, House
353	353	granted request of the Senate; May 17, 2023, Senate adopted
354	354	Conference Committee Report by the following vote: Yeas 31,
355	355	Nays 0.
356	356	______________________________
357	357	Secretary of the Senate
358	358	I hereby certify that S.B. No. 1238 passed the House, with
359	359	amendments, on May 2, 2023, by the following vote: Yeas 132,
360	360	Nays 7, one present not voting; May 5, 2023, House granted request
361	361	of the Senate for appointment of Conference Committee;
362	362	May 15, 2023, House adopted Conference Committee Report by the
363	363	following vote: Yeas 131, Nays 13, one present not voting.
364	364	______________________________
365	365	Chief Clerk of the House
366	366	Approved:
367	367	______________________________
368	368	Date
369	369	______________________________
370	370	Governor